Stocks in Focus on November 5, 2019: CPF and MEGA

Stocks in Focus on November 5, 2019: CPF (Krungsri Securities TP ฿33.50/share) and MEGA (Kasikorn Securities TP ฿43.00/share).

Kaohoon Online has selected stocks with a potential of high growth for investors to consider on November 5, 2019.

 

Krungsri Securities (KSS) has given a “BUY” recommendation on Charoen Pokphand Foods Public Company Limited (CPF) with a target price at ฿33.50/share.

KSS states that ASF (African Swine Fever) outbreak has been priced-in. Domestic swine prices have recovered from Bt55/kg to Bt60, and prices have doubled in Vietnam from VND33,000/kg to VND60,000. This will support earnings recovery in 3Q19 and 4Q19. Also, China has recently allowed CPF to export more chicken products to China.

 

Kasikorn Securities (KS) has given an “Outperform” rating on Mega Lifesciences Public Company Limited (MEGA) with a target price of ฿43.00/share.

KS states that MEGA’s 3Q19 earnings (due this Friday) are expected at Bt256mn (+0.5% YoY, +16% QoQ) on higher sales of both MegaWeCare and Maxxcare and good cost control. MEGA in among the companies that could capture healthy growth prospects in Vietnam as some 20% of revenue is derived from vitamin and supplement sales in the country. The stock at the current level implies a PER of 17x 2020, or -2SD its historical average.

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